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08-16-1999
i Agenda/Pension 8-16-99 covo ACTION AGENDA Board of Trustees of the Employees' Pension Fund August 16, 1999 1. Call to Order - 9:21 a.m. 2. Approval of Minutes: 7/1 2/99 - Approved as submitted. 3. Request for acceptance into membership: Theresa McNeela, Edward Hartman, Daniel Harrison, Earl Ashley, Elizabeth Lancara, Lori Metzner, George Banores, Antoinette DeLuca, Sylvia Walls, Eric Jenkins, Luther Mack, Robert Mock, Mark Crellin, John Waldman, Lisa Authier, Chance Anderson & Matthew Johnson - Approved. 4. Regular Pension to be granted: Duane E. Smith - Approved. 5. Pension to be vested: Nancy Yankus - Approved. 6. Waive Vested Pension: Lori Metzner - Approved. 7. Approve recommended administrative expenditure budget for Fiscal Year 1999-2000 totaling $127,088 for City of Clearwater Employees' Pension Plan - Approved. 8. Approve increase in amount authorized to be spent with PriceWaterhouseCooper, LLP for actuary & other related services by $15,000 for total of $120,000 for 3 year period ending 12131/2001 - Approved. 9. Accept Actuary's Report for Employees' Pension Plan for plan year beginning 1 /1 /99 - Accepted. 10. Approve Legal Services Agreement with Christiansen & Dehner, P.A., for pension attorney services - Approved. 1 1. Other Business - Authorized City Attorney to hire outside counsel, Thompson, Sizemore & Gonzalez, to represent Trustees in lawsuit initiated by Officer Krieger V'. Pension Trustees & City. 12. Adjourn - 9:41 a.m. -Fro S+C es 3 Meeting Date: 9-1?.q_q Approved by Trustees TO: FROM: SUBJECT: DATE: Pension Trustees CITY OF CLEARWATER EMPLOYEES' PENSION PLAN PENSION ADVISORY COMMITTEE Pension Advisory Committee Recommendation for Acceptance into Pension Plan July 14, 1999 As Trustees of the City of Clearwater Employees' Pension Fund, you are hereby notified that the employee(s) listed below have been duly examined by a local physician and each has been designated as a "first class risk". The employment of these individuals brings the number of FTE's as of this date to 1644.9 out of 1750.0 budgeted positions (including the City Commission). These employees are eligible for pension membership as noted in the Pension Eligibility Date column below, and it is the recommendation of the Pension Advisory Committee that they be accepted into membership. Pension Elig. Name,Job. Class, & Dept./Div. Hire Date Date Theresa McNeela, Police Aide/Police 5/27/97 4/24/99 Edward Hartman, Police Aide/Police 7/22/96 4/24/99 Daniel Harrison, Police Aide/Police 1 /21 /97 4/24/99 Earl Ashley, Fleet Service Worker/General Support Services 6/7/99 6/7/99 Elizabeth Lancara, Staff Assistant I/Fire 6/7/99 6/7/99 Lori Metzner, Librarian I/Library 9/6/94 6/5/99 George Banores, Marine Facility Operator/Marine 3/1 1 /98 6/5/99 Antoinette DeLuca, Police Information Technician/Police 6/7/99 6/7/99 Sylvia Walls, Police Information Technician/Police 5/24/99 5/24/99 Eric Jenkins, Public Services Tech. I/Public Works 6/21 /99 6/21 /99 Luther Mack, Custodial Worker/General Support Services 6/21 /99 6/21 /99 Robert Mock, Maintenance Worker II/Parks & Recreation 6/21 /99 6/21/99 Mark Creliin, Survey Assistant/Public Works 6/21 /99 6/21 /99 John Waldman, Air Conditioning Tech. /General Sup. Services 6/21 /99 6/21/99 Lisa Authier, Accounting Clerk/General Support Services 6/21 /99 6/21 /99 Chance Anderson, Public Services Tech. I/Public Works 6/21 /99 6/21 /99 Matthew Johnson, Maintenance Worker I/Parks & Recreation 6/21 /99 6/21 /99 * originally hired part-time; changed to full-time and eligible for pension as of this date ension Advisory mi air % Trustees of the Agenda Item # Employees' Pension Plan 8/16/99 Meeting Date: Agenda Cover Memorandum SUB) ECURECOMMEN DATION: Duane E. Smith IV, Police Department, be granted a regular pension under Section(s) 2.393 and 2.397 of the Employees' Pension Plan as approved by the Pension Advisory Committee. and that the appropriate officials be authorized to execute same. SUMMARY: Duane E. Smith IV, Police Sergeant, Police Department, was employed by the City on May 3, 1976, and his pension service credit is effective on November 3, 1976. His pension will be effective August 1, 1999. This pension was approved by the Pension Advisory Committee on July 14, 1999. Based on an average salary of approximately $60,433 per year over the past five years, the formula for computing regular pensions, and Mr. Smith's selection of the joint & Survivor Annuity, this pension will approximate $37,753 annually. Section 2.393 (p) provides for normal retirement eligibility when a participant has completed twenty years of credited service in a type of employment described as "hazardous duty" and further specifically defines service as a Police Sergeant as meeting the hazardous duty criteria. Mr. Smith qualifies under the hazardous duty criteria. Reviewed by: Originating Dept: Costs Legal NA Info Tech NA Human Resources Total Budget NA Public Works NA User Dept. Funding Source: Purchasing NA DCM/ACM l.?k c"p'"l'"'pro?""ew Current Fiscal Year Risk Mgmt NA Other NA Attachments Operating Other Appropriation Code: Submitted by: ? None City Manager Printed on recycled paper Rev. 2/98 M S7 Trustees of the _ Agenda Item # Employees' Pension Plan Meeting Date: 8/16/99 Agenda Cover Memorandum SUBJECT/RECOMMENDATION: Nancy Yankus, Clearwater Customer Service/Gas Department, be allowed to vest her pension under Section(s) 2.397 and 2.398 of the Employees' Pension Plan as approved by the Pension Advisory Committee. 1 and that the appropriate officials be authorized to execute same. SUMMARY: Nancy Yankus, Meter Reader, Clearwater Customer Service/Gas Department, was employed by the City on June 30, 1987, and her pension service credit is effective on that date. Her pension will be effective March 1, 2008. The Employees' Pension Plan provides that should an employee cease to be an employee of the city of Clearwater after completing ten or more years of creditable service (pension participation), then such employee shall acquire a vested interest in the retirement benefits. Vested pension payments commence on the first of the month following the month in which the employee normally would have been eligible for retirement. Section 2.393 (p) provides for normal retirement eligibility when a participant has reached age 55 and completed twenty years of credited service or has completed 30 years of credited service. Ms. Yankus would have reached age 55 and completed at least twenty years of service on February 16, 2008. Her pension will be effective March 1, 2008. This request was approved by the Pension Advisory Committee on July 14, 1999. Reviewed by: Originating Dept: Costs Legal NA Info Tech NA Human Resources Total Budget NA Public Works NA User Dept. ? ? Funding Source: Purchasing NA DCM/ACM ,( ?0; c,P6,11 111)pr0%efT1C11t Current Fiscal Year Risk Mgmt NA Other NA Attachments operating Other Appropriation Code: Submitted by: ? None City Manager Printed on recvcled oaner Rpv_ 2/qR Trustees of the Agenda Item # - Employees' Pension Plan Meeting Date. .8/16/99 Agenda Cover Memorandum SUBJECT/RECOMMENDATION: Lori Metzner, Librarian I, Library Department, be allowed to waive her vested pension rights. and that the appropriate officials be authorized to execute same. SUMMARY: Lori Metzner, Librarian 1, Library Department, was employed by the City of Clearwater from October 25, 1982, to October 30, 1992. At the time she resigned, she formally requested to vest her pension which was approved by the Pension Advisory Committee and the Pension Trustees. Ms. Metzner returned to City employment on September 6, 1994, as a part-time employee. On June 5, 1999, she converted to full-time and once again became eligible to participate in the Pension Plan. Upon the recommendation of the Legal Department, Ms. Metzner has requested that her previous vested pension right be waived. This request was approved by the Pension Advisory Committee on July 14, 1999. Upon approval of this request, Ms. Metzner's previous period of employment will be added to her current period of employment and she will be eligible for retirement upon completion of twenty years of creditable service and age 55. Reviewed by: Originating Dept: Costs Legal NA Info Tech NA Human Resources Total Budget NA Public Works NA User Dept. Funding Source: Purchasing NA DCM/ACM A K_ Captial Improvement Current Fiscal Year Risk Mgmt NA Other NA Attachments Operating Other Appropriation Code: Submitted by: O None VcitLPrinted Mana er on recycled paper Rev. 2/98 Employees' Pension Trustee Agenda Cover Memorandum Agenda Item # ? Meeting Date: 13-16-97 SUBJECT/RECOMMENDATION: Approve the recommended administrative expenditure budget for fiscal year 1999-00 totaling $127,088 for the City of Clearwater Employees' Pension Plan, 19 and that the appropriate officials be authorized to execute same. SUMMARY: • Attached is the proposed budget for fiscal year 1999 - 2000 including historical numbers. • Medical Bills is for the medical services that the Pension Advisory Committee authorizes. • Travel and training is for members of the Pension Investment Committee to attend the Callan training seminar, visit Callan, the pension plan's performance measurement firm, and a due diligence visit to one of the money managers. • Printing and Binding is for the statutorily required annual information distribution to the members of the pension plan. • Money Manager, Safekeeping Service, Pension Administrator and Actuary fees are all set by contracts approved by the trustees and are not included in this administrative budget. • Reimbursement to the General Fund is for the cost of oversight of the plan and cost of issuing pension checks. • All amounts are the same as the current budget with two exceptions. • Reimbursements to the General Fund have been update to more accurately reflect costs. This will bring the General Fund reimbursements to $65,838. Of this number $10,800 is Payroll, $21,285 is Finance, $2,325 is Legal and $31,428 is Human Resources. • Second is the cost associated with the Employee's pension fund having its own attorney. Since the pension attorney was hired mid year in this fiscal year only one half of the estimated cost were included in the current budget. • Reimbursement to the General Fund is recognized as revenue to the General Fund. Reviewed by: Originating Dept: Costs Legal N/A Info Srvc N/A Finance k-M Total $127,088 Budget LIM-J Public Works N/A User Dept. Funding Source: _ Purchasing N/A DCM/ACM Finance Current FY $0 CIP Risk Mgmt N/A Other Attachments OP Expenditure Worksheet Other Pension Submitted by: City Manager O None Appropriation Code: 646-074XX-5xxxOO-58x-000 Printed on recvcled oaner Rev. 2/98 F-7 W o h o -dol IOCII -00- CD CD C:) C) c) CD f` O O ?Z o 0 0 0 0 o 0') mot; r; Q o o co o o 6 06 v- ?- = o c0 LD c0 WLIJ fn 0 0 0 CD 0 O 0 O 40 N N N N LLJ N O N N V 0) W 0 VU zo D o 0 0 0 0 o O 00 co F-- ~ O N d• t 0A 0 Q N coo 00 O p V) ? W VD e1' p 0 r C0 w uA tD f` ? CIO Lli Q CO OC-4 ? J Lr) 00 cle) O 00 00 O C O r- 0 ? O O Q 0 : 17 `t' ?- ?- t- M co O N t1 N L co U ? •0 cc Q Q • E < Q V M ~ W O 0 O O O O tf? r- 0 U O CY) O N d' LO O L ?- N C0 00 0 W V C - ao O D O N C0 co o (V ` ' v 0 I? LL LL. U co . 0 A J c P- M ? O O O O O O 0 o ? O O O LO V 0.. W j F- O d• cv a? ? N Cl) O Q 0.. Q ? ?Q 0 0 0 0 0 0 0 0 CD O 0 C) . E p. cm Z) In V- 'Irt co M U N N rn Q c C7 U- Z 0 E"' d o 9 a a) c ._ U W CL o -- m U ?' c m - a) `- c p a - Cn w CO a) o. 0 c = Q Q) J ,a O ~ W v? rn U C) N c 2 FW 1- A 0 0: • Employee Pension Plan Trustee - Agenda Cover Memorandum Agenda Item It Meeting Date: 8/16/99 SUBJECT/RECOMMENDATION: Approve increase in the amount authorized to be spent with PriceWaterhouseCoopers, LLP for actuary and other related services by $15,000 for a total amount authorized of $120,000 for the 3 year period ending 12/31/01, ? and that the appropriate officials be authorized to execute same. SUMMARY: • PriceWaterhouseCoopers, LLP was selected as the Employee Pension Plan's actuary as a result of an RFP. A three year contract was approved at the February 16, 1999 Trustee's meeting for $105,000. Fees included in the request included the cost of three (3) annual actuarial reports ($16,000, $16,500, and $17,000) as well as the estimated costs for annual pre-retirement workbooks, individual employee retirement benefit statements, quarterly retirement seminars, employee retirement counseling, and a minimal amount for miscellaneous actuarial advice to staff. • Since the approval of this contract, a need has been determined to conduct actuarial reports on the costs of potential changes to the pension plan. These were not anticipated at the time of the original contract. • The following needs have been determined: • At the July 14, 1999 PAC meeting, the PAC recommended that a study be conducted on the cost of amending the plan to include an option for retirement at age 65 with at least 10 years of service (without a reduction). Currently, retirement at age 65 with at least 10 years of service is only permitted with an actuarial reduced amount. • Legislation was passed which requires changes to our plan for police and fire only to the extent that state insurance money is available (Section 175/185). It will take an actuarial analysis to determine which changes should be implemented. • During union negotiations, the unions have suggested that the pension plan include a cost of living adjustment. This will require an actuarial study on each option researched to determine the cost of changing the plan. • I have contracted PriceWaterhouseCoopers to get estimates for conducting the abcve studies. I will finalize the exact costs of each study prior to initiation of the study. The estimates are $1,500 - $2,000 for the age 65/10 years; $3,000 - $6,000 for the 175/185 evaluation; and $2,000 - $7,000 for the cost of living adjustment. Reviewed by: Originating Dept: Costs Legal Info Srvc N/A Finance Total $15,000 Budget /Public Works N/A User Dept. Funding Source: Purchasin DCM/ACM Finance Current FY $15,000 CI Risk Mgmt N/A Other Attachments OP r..; Other Pension Submitted by: City Manager ? None Appropriation Code: 646-07410-530100-585-000 Printed on recvcled paver Rev. 2198 DRAFT ro S ACTUARY'S REPORT FOR THE CITY OF CLEARWATER EMPLOYEES' PENSION PLAN As of January 1, 1999 To determine annual contribution For the Plan Year: 01/01/99 -12/31/99 To be paid in the Fiscal year: 10/01/99 - 09/30/00 June 16, 1999 City of Clearwater P.O. Box 4748 Clearwater, FL 33758-4748 Ladies and Gentlemen: This report presents the results of the January 1, 1999 actuarial valuation of the City of Clearwater Employees' Pension Plan. It has been prepared primarily to present to management the contribution requirements for 1999 and also the current status of funding of accumulated plan benefits. Section IV of this report includes a presentation of the information required by the Government Accounting Standards Board (GASB) Statements No. 25 and 27. Our calculations were based on financial data and employee data furnished by the City of Clearwater. The valuation was based upon generally accepted actuarial methods, and we performed such tests as we considered necessary to assure the accuracy of the results. To our knowledge there are no benefits or expenses to be provided by the plan for which a liability or current cost was not established. We certify that the amounts presented in the accompanying report have been appropriately determined according to the actuarial assumptions stated herein. Statement by Enrolled Actuary This actuarial valuation and/or cost determination was prepared and completed by me or under my direct supervision, and I acknowledge responsibility for the results. To the best of my knowledge, the results are complete and accurate, and in my opinion, the techniques and assumptions used are reasonable and meet the requirements and intent of Part VII, Chapter 112, Florida Statutes. There is no benefit or expense to u?, `the provided by the plan or paid from the plan's assets for which liabilities or current costs have not been established or otherwise taken into account in the valuation. All known events or 'trends which may require a material increase in plan costs or required contribution rates have been taken into account in the valuation. Respectfully submitted, Stephen M. Metz Associate of the Society of Actuaries Enrolled Actuary Number 99-4342 Mark E. Knecht Associate of the Society of Actuaries Enrolled Actuary Number 99-5471 DRAFT CONTENTS SECTION I SECTION II SECTION III SECTION IV SECTION V SECTION VI SECTION VII SECTION VIII SUMMARY FUNDING ASSETS ACCOUNTING CENSUS DATA ASSUMPTIONS AND METHODS SUMMARY OF PLAN PROVISIONS COMPARATIVE SUMMARY OF PRINCIPAL VALUATION RESULTS Pales 1-6 7- 11 12 - 15 16 - 17 18-20 21 - 22 23 - 24 25 - 29 DRAFT CITY OF CLEARWATER EMPLOYEES' PENSION PLAN SECTION I - SUMMARY A. Actuary's Comments This report presents the highlights of the January 1, 1999 actuarial valuation prepared to determine the contribution requirements for the 1999-2000 fiscal year. Since the last actuarial valuation of the plan on January 1, 1998, there have been no changes in the actuarial assumptions and methods or the plan provisions. For a detailed description of the plan provisions, please see Section VII and for a detailed description of the actuarial assumptions and methods, please see Section VI of this report. The minimum required City Contribution for the 1999 plan year is $0 (excluding the credit balance) compared to $1,299,185 for 1998. As a percentage of payroll, this represents a decrease from 2.75% to 0%. The change in the minimum required contribution is primarily due to the following factors: • an actuarial investment return of 15.28% in comparison to an assumed rate of 7.0%, • actual salary increases of 7.4% in comparison to an assumed rate of 5.0%, and 0 actual expenses for the year were $145,933 less than expected. The plan's credit balance is currently equal to $6,812,956, providing an additional cushion against future contributions. Continued asset gains have grown the assets of the plan to the point that no contribution in excess of the employee contributions is currently required. Although State Law does not require any employer contributions for 1999, the ordinance establishing the plan does require a minimum of 7% of payroll. The reconciliation of the minimum required contribution from the 1998 plan year level to the 1999 level is as follows: Minimum Contribution - 1998 Increase / (Decrease) in Normal Cost Increase / (Decrease) in expected expenses (Increase) / Decrease in expected employee contributions Increase / (Decrease) in Net Interest Minimum Contribution - 1999 $1,299,185 (829,572) (145,933) (190,826) 13( 2,854) $ 0 In addition, the market value of assets of the plan exceeds the actuarial value by more than $62 million. Over the next four years this excess will be included in the actuarial value and will help reduce the funding requirements. The funded status of the plan increased compared to the prior year. The ratio of assets at market value to the actuarial present value of accumulated plan benefits increased from 165% at January 1, 1998 to 174% at January 1, 1999. DRAFT CITY OF CLEARWATER EMPLOYEES' PENSION PLAN SECTION I - SUMMARY (continued) B. Contribution Requirements for the Plan Year Ending, December 31, 1999 Minimum Required Employer Contribution Florida Statutes 7% of Payroll $ 0 $ 3,476,657 The employer contribution is assumed to be made uniformly during the first two quarters of the fiscal year beginning on October 1, 1999. Differences in the investment return due to contributions actually being made at any other time will be recognized as an actuarial gain or loss in the following valuation. The minimum required contribution represents a funding level which will satisfy the minimum funding requirements under Part VII, Chapter 112, Florida Statutes. Please refer to Section VI and VII of the report for a summary of the actuarial assumptions and plan provisions, respectively. 2 DRAFT CITY OF CLEARWATER EMPLOYEI?S PENSION PLAN SECTION I-SUMMARY (continued) C. Comparative Summary of Principal Valuation Results Actuarial Valuation Prepared as of: Jan. 1, 1999 Jan.], 1998 Jail. 1, 1997 (a) Participant Data Number Included Active Members 1,465 1,476 1,461 Retirees and Beneficiaries 497 451 427 Terminated Vested Participants 24 13 8 Annual Payroll of Actives $49,666,523 $47,281,198 $44,955,348 Annualized Benefits Retirees and Beneficiaries $8,736,788 $ 75434,602 $ 6,617,342 Terminated Vested Participants $ 609,254 $ 208,617 $ 76,631 (b) Actuarial Reserves Market Value $416,808,909 $358,473,903 $306,112,707 Actuarial Value $354,088,751 $308,596,133 $272,346,200 (c) Liabilities Present Value of Expected Benefits: Active Participants: Retirement Benefits $235,098,023 $225,106,202 $216,762,211 Termination Benefits 14,698,087 14,168,647 13,766,627 Disability Benefits 11,750,352 11,440,100 10,918,448 Death Benefits 3,746,148 3,547,472 3,382,956 Refund of Employee Contributions 1,91 1,990 - 1,914.673 1,793,016 Total Active $267,204,600 $256,177,094 $246,623,258 Terminated Vested Participants 6,924,622 1,874,204 744,997 Retirees and Beneficiaries 96,038,941 82,152,143 73,744,516 Total Present Value of Expected Benefits $370,168,163 $340,203,441 $321,112,771 Liabilities Due and Unpaid $ 361,709 $ 282,796 $ 270,977 3 CITY OF CLEARWATER EMPLOYEES' PENSION PLAN DRAFT SECTION I - SUMMARY (continued) C. Comparative Summary of Principal Valuation Results, (continued) Actuarial Valuation Prepared as of: Jan. 1, 1999 Jan. l , 1998 Jan. 1, 1997 (c) Liabilities (continued) Unfunded Actuarial Accrued Liability Frozen Initial Liab. (FIL) Supplemental FIL Supplemental FIL Supplemental FIL Supplemental FIL Supplemental FIL Supplemental FIL Asset Valuation Method Change Plan Amendment - 1/1/79 - 1/1/79 - 1/1/81 - 1/1/82 - I/l/R7 - i/I/88 - 1/1/89 - 1/1/94 $ 2,436,537 1,422,814 238,018 (2,930,862) 1,231,458 1,394,067 1,859,232 $ 3,069,696 1,533,681 251,850 (3,079,694) 1,265,308 1,428,923 1,901,618 $ 3,661,433 1,637,295 264,778 (3,218,790) 1,296,944 1,461,499 1,941,231 Total - 1/1/96 (d) Funding Account Credit Balance Prior Year Amount Prior Year: Required Employer Contributions Employer Contributions Made Interest on Credit Balance Total (e) Actuarial Present Value of Accrued Benefits (see Subsection V11 for detail) Changes During Prior Year: Value from Prior Year: Benefits Paid Interest, Aging and Benefits Accrued Change in Assumptions Change in Plan Provisions Net Change 3,497,561 _ 14,551,155 $ 23,699,980 $ 3,932,987 (1,299,185) 3,903,845 275,309 $ 6,812,956 $240,168,855 $216,607,963 (8,197,805) 31,758,697 0 0 $ 23,560,892 3,549,242 14,733,735 $ 24,654,359 $3,503,365 (3,485,400) 3,669,786 245,236 $ 3,932,987 $216,607,963 $202,942,802 (7,694,700) 21,359,861 0 0 $ 13, 665,161 3,597,542 14,904,370 $ 25,546,302 $4,801,302 (4,960,244) 3,326,216 336,091 $ 3,503,365 $202,942,802 $190,506,777 (6,705,679) 19,141,704 0 0 $ 12,436,025 Value at Current Year $240,168,855 $216,607,963 $202,942,802 4 CITY OF CLEARWATER EMPLOYEES' PENSION PLAN DRAFT SECTION I -SUMMARY (continued) C. Comparative SummaU of Principal Valuation Results, (continued) Actuarial Valuation Prepared as of: Jan.l, 1999 Jan. 1, 1998 Jail. 1, 1997 (f) Pension Cost for Year Normal Cost $ (94,366) $1,276,592 $3,092,928 Amortization of Unfunded Frozen Initial Liability 2,504,845 2,504,845 2,504,845 Administrative Expenses 1,025,041 1,170,974 1,126,697 Shortfall for Expenses in Prior Year (145,933) 44,277 129,341 Interest Adjustment (47 861) 84,993 228,017 Total Required Contribution $ 3,241,726 $ 5,081,681 $ 7,081,828 As a Percentage of Payroll 6.5% 10.7% 15.8% Anticipated Employee Contributions $ 3,973,322 $ 3,782,496 $ 3,596,428 As a Percentage of Payroll 8.0% 8.0% 8.0% City Required Contribution $ 0 $ 1,299,185 $ 3,485,400 As a Percentage of Payroll 0.0% 2.7% 7.8% (g) Prior Year Actual Contributions made by Employees $ 4,293,961 $ 4,108,525 $ 3,898,840 City 3,903,845 3,669,786 3,326,216 Total $ 8,197,806 $ 7,778,311 $ 7,225,056 (h) Gains and Losses N/A N/A N/A (i) Other Present Values Present Value of Future Salaries At attained age $417,232,600 $402,814,600 $388,169,500 At entry age $3401646,400 $329,069,700 $316,245,800 5 DRAFT CITY OF CLEARWATER EMPLOYEES' PENSION PLAN SECTION I - SUMMARY (continued) C. Comparative Summary of Principal Valuation Results, (continued) Actuarial Valuation Prepared as of: Jan. 1, 1999 Jan. 1, 1998 Jan. 1, 1997 (i) Other Present Values (continued) Present Value of Employee Contributions At attained age At entry age Present Value of Future Normal Costs $ 33,336,186 26,648,337 $ (807,612) $ 32,170,725 25,735,980 $ 10,885,936 $ 31,000,124 24,740,604 Present Value of Benefits Active Employees - at entry age $ 70,293,767 $ 67,892,002 $ 26,723,634 $ 65,085,369 0) Comparison of Actual and Assumed Salary Increases Investment Return Year Ended Actual Assumed Actual Assumed Market Value Actuarial Value 12/31/86 7.4% 5.0% 13.21% N/A 7.0% 12/31/87 5.9% 5.0% 10.78% N/A 7.0% 12/31/88 9.1% 5.0% 9.12% N/A 7.0% 12/31/89 8.7% 5.0% 20.84% N/A 7.0% 12/31/90 5.3% 5.0% 6.21% N/A 7.0% 12/31/91 6.1% 5.0% 28.52% N/A 7.0% 12/31/92 6.8% 5.0% 6.49% N/A 7.0% 12/31/93 1.2% 5.0% 9.29% 7.42% 7.0% 12/31/94 4.4% 5.0% 0.89% 6.28% 7.0% 12/31/95 6.4% 5.0% 23.36% 9.14% 7.0% 12/31 /96 6.7% 5.0% 14.80% 11.54% 7.0% 12/31/97 5.6% 5.0% 17.49% 13.74% 7.0% 12/31/98 7.4% 5.0% 16.74% 15.28% 7.0% 6 CITY OF CLEARWATER EMPLOYEES' PENSION PLAN SECTION II - FUNDING A. Development of the Unfunded Frozen Actuarial Accrued Liability 1. Unfunded Frozen Actuarial Accrued Liability as of January 1, 1998 Interest to Deccember 31, 1998 2. Employer Normal Cost* for Year with interest to December 31, 1998 3. Required Employer Contributions for Period 4. Unfunded Frozen Actuarial Accrued Liability as of December 31, 1998 (Items 1 + 2 - 3) * Includes Expenses and Adjustments $ 24,654,359 $ 1,725,805 DRAFT $26,380,164 (1,380,999) 1,299,185 $23,699,980 7 CITY OF CLEARWATER EMPLOYEES' PENSION PLAN SECTION II - FUNDING continued DRAF- B. Development of Normal Cost The Normal Cost is the portion of the cost of projected benefits which is allocated to the current year by the actuarial cost method. The Normal Cost for the plan years beginning January 1, 1999, January 1, 1998 and January 1, 1997 are determined as follows: Total Projected Actuarial Liability: Jan. 1, 1999 Jail. 1, 1998 Jan.l, 1997 The present value as of the beginning of the plan year of all benefits expected to be paid in the future to current participants. Active participants $267,204,600 $256,177,094 $246,623,258 • Terminated vested participants 6,924,622 1,874,204 744,997 • Retired and disable participants 96,038,941 82,152,143 73,744,516 0 Total Participants $370,168,163 $340,203,441 $321,112,771 Credit Balance: Employer contributions from prior years reserved for future use. $ 6,812,956 $ 3,932,987 $ 3,503,365 Fund: The actuarial value of fund assets as of the beginning of the plan year. $354,088,751 $308,596,133 $272,346,200 Excess of Total Projected Actuarial Liability Over the Fund Minus the Credit Balance: The portion of the projected total actuarial liability to be funded in the future. $ 22,892,368 $ 35,540,295 - $ 52,269,936 This portion is divided into two components: a. Unfunded Frozen Actuarial Accrued Liability $ 23,699,980 $ 24,654,359 $ 25,546,302 b. Present value of future service liability (funded over the expected future service years of current participants) $ (807,612) $ 10,885,936 $ 26,723,634 Present Value of Future Covered Payroll: $417,232,600 $ 402,814,600 $ 388,169,500 8 CITY OF CLEARWATER EMPLOYEES' PENSION PLAN SECTION 11 -FUNDING (continued) DRAPIr B. Development of Normal Cost, (continued) Jan. 1, 1999 Jan. 1, 1998 Jan. 1, 1997 Normal Cost Rate: The ratio of the present value of future service liability to the Present Value of Future Covered Payroll. (0,190/0) 2.70% 6.881/o Annual Covered Payroll: The reported payroll for plan participants who have not attained the assumed retirement age. $ 49,666,523 $ 47,281,198 $ 44,955,348 Normal Cost: The annual cost as of the beginning of the plan year to fund the future service liability over the expected future years of service of the current participants. $ (94,366) $ 1,276,592 $ 3,092,928 9 CITY OF CLEARWATER EMPLOYEES' PENSION PLAN DRAFr, SECTION II -FUNDING (continued) C. Schedule of Amortization Payments Initial Jan. 1, 1999 Annual Date Initial Amortization Unamortized Amorization Established Reason Amount Period (Years) Amount Payment 1/1/79 * Frozen Initial Liability (FIL) $ 9,726,419 24.5 $ 21436,537 $ 792,558 1/1/79 Supplemental FIL 2,707,962 30.0 1,422,814 203,949 1/1/81 Supplemental FIL 390,421 30.0 238,018 29,404 1/1/82 Supplemental FIL (4,521,985) 30.0 (2,930,862) (340,571) 1/1/87 Supplemental FIL 1,519,142 30.0 1,231,458 114,413 1/1/88 Supplemental FIL 1,673,738 30.0 1,394,067 126,057 1/1/89 Supplemental FIL 2,177,772 30.0 1,859,232 164,018 1/1/94 Asset Valuation Method Change 3,724,296 30.0 3,497,561 280,493 1/1/96 Plan Amendment 15,063,842 30.0 14,551,155 1,134,524 Total Charges $36,983,592 $ 26,630,842 $ 2,845,416 Total Credits (4,521,985) (2,930,862) (340,571) Total $ 32,461,607 $ 23,6991980 $ 2,504,845 * Established July 1, 1963 and being amortized over a forty year period beginning on that date. 10 CITY OF CLEARWATER EMPLOYEES' PENSION PLAN SECTION II -FUNDING (continued) Dff%AFT D. Anticipated Amortization Schedule Shown below is the anticipated amortization schedule for the Unfunded Frozen Actuarial Accrued Liability taking into account the plan's funding policy. Anticipated Amortization Schedule Unfunded Frozen Date Actuarial Accrued Liability 1999 23,699,980 2000 22,678,796 2001 21,586,128 2002 20,416,973 2026 0 On July 1, 1963, the Unfunded Frozen Actuarial Accrued Liability was established equal to the difference between the retirement plan's accrued liability, determined under the Entry Age Normal Funding Method and the actuarial value of plan assets. According to the plan's funding policy, the initial liability is to be amortized by a series of level payments over a forty-year period. Subsequent changes in the level of the Frozen Actuarial Accrued Liability due to plan amendments or changes in actuarial assumptions are to be amoritzed on a straight-line basis over a period of thirty years. By contributing more than the stated funding policy, the amortization of the Unfunded Frozen Actuarial Accrued Liability can be accelerated. CITY OF CLEARWATER EMPLOYEE'S PENSION PLAN SECTION II - ASSETS DRAFT Comparative Balance Sheet As of December 31, 1998 Market Value Market Value ASSETS 12/31/98 12/31/97 Cash $ 5,825,791 $ 5,480,663 Money Market Accounts 24,012,247 25,223,136 Guaranteed Investment Contracts 10,509,722 151000,000 Corporate Equity Securities 250,102,536 205,932 157 Bonds 124,344,592 , 105,234,881 Total Investments 414,794,888 356,870,837 Receivables: Interest - pooled cash 185,842 179,929 Employer Contributions 1,828,179 1,705,933 Total Assets $416,808,909 $358,756,699 LIABILITIES AND ACTUARIAL RESERVES Liabilities: Accounts Payable 361,709 282,796 Total Liabilities $ 361,709 $ 282,796 Actuarial Reserves: Accumulated Member Contributions 31,653,064 30,662,054 Balance of Actuarial Reserves 384,794,136 327,81 1,849 Total Actuarial Reserves 416,447,200 358,473,903 TOTAL LIABILITIES AND ACTUARIAL RESERVES $416,808,909 $358,756,699 12 CITY OF CLEARWATER EMPLOYEE'S PENSION PLAN SECTION III -ASSETS (continued) DRAFT Schedule of Changes in Actuarial Reserves For the Plan year Ended December 31, 1998 Market Value Revenues: Employee Contributions $ 4,293,961 Employer Contributions 3,903,845 Earnings on Investments: Interest $ 10,736,132 Dividends 1,833,631 Realized Net Gains on Securities Transactions 28,148,495 $40,718,258 Unrealized Appreciation (Depreciation) on Investments 19,216,983 Expenses: $68,133,047 Benefits Paid $ 8,580,021 Refunds of Contributions 138,585 Professional Fees 1,025,041 Other Expenses 0 $9,743,647 Net Change in Actuarial Reserves 58,389,400 Adjustment per 12/31/98 asset report (54,394) Actuarial Reserves at Beginning of Plan Year 358,473,903 Actuarial Reserves at End of Plan Year $416,808,909 13 CITY OF CLEARWATER EMPLOYEE'S PENSION PLAN SECTION III -ASSETS (continued) Development of Actuarial Value of Assets DK'AFT 1. Actuarial Reserves at Beginning of Plan Year $358,473,903 2. Time Weighted Employee Contributions 2,146,981 (.5 x 4,293,961) 3. Time Weighted Employer Contributions 243,990 (.5 x .125 x 3,903,845) 4. Time Weighted Benefit Payments 3,996,027 (11/24) x (8,718,605) 5. Time Weighted Expenses 512,521 (.5 x 1,025,041) 6. Time Weighted Value of Actuarial Reserves $356,356,326 . (Items 1 +2+3-4-5) 7. Expected Asset Return 24,944,943 (Item 6 x .07) 8. Actual Asset Return 59,880,847 9. Difference of Expected Return over Actual Return (34,935,904) 10. Actuarial Reserves at End of Plan Year 416,808,909 11. Expected Actuarial Reserves at End of Plan Year 381,873,005 (Items 9 + 10) 12. Difference Between Actual and Expected Asset Return $ 34,935,904 (Items 10 - 11) 0; 14 CITY OF CLEARWATER EMPLOYEE'S PENSION PLAN SECTION III -ASSETS (continued) Development of Actuarial Value of Assets (continued) DRAFT Date Initial Annual Amount Amount Excluded Amount Excluded Established Amount Recognized Prior Valuation Current Valuation 01/01/95 $(13,122,649) $ (2,624,529) $ 2,624,529 0 01/01/96 $ 35,600,142 $ 7,120,028 $(14,240,058) $ (7,120,030) 01/01/97 $ 20,905,508 $ 4,181,102 $(12,543,304) $ (8,362,202) 01/01198 $ 32,148,671 $ 6,429,734 $(25,718,937) $(19,289,203) 01/01/99 $ 34,935,904 $ 6,987,181 $ 0 $(27,948,723) Total $(62,720,158) Actuarial Reserves $416,808,909 Actuarial Value of Assets $354,088,751 15 CITY OF CLEA.RWATER EMPLOYEE'S PENSION PLAN SECTION IV - ACCOUNTING A. Plan Description and Contribution Information DRAF'G Membership of the plan consisted of the following at January 1, 1998, the date of the latest actuarial valuation: Retirees and beneficiaries receiving benefits 451 Terminated plan members entitled to but not yet receiving benefits 13 Active plan members Total Number of participating employers 1,476 1,940 1 16 CITY OF CLEARWATER EMPLOYEE'S PENSION PLAN SECTION IV - ACCOUNTING (continued) D R"'A F B. Required Supplementary Information Scheduling of Funding Progress Actuarial Actuarial UAAL as a Actuarial Value of Accrued Liability Unfunded Percentage Valuation Assets (AAL) AAL Funded Covered of Covered Date (a) Frozen Entry Age (UAAL) Ratio Payroll Payroll (b) (b-a) (a/b) (c) ( (b-a) / c) 01/01/91 $141,865,764 $152,118,075 $10,252,311 93% $34,532,753 30% 01/01/92 $184,746,269 $194,550,126 $9,803,857 95% $36,626,332 27% 01/01/93 $198,315,690 $207,639,701 $9,324,011 .96% $38,731,039 24% 01/01/94 $213,014,474 $225,549,346 $12,534,872 94% $38,710,974 32% 01/01/95 $225,482,726 $237,428,796 $11,946,070 95% $41,371,332 29% 01/01/96 $244,744,488 $271,124,381 $26,3791893 90% $44,208,964 60% 01/01/97 $272,346,.200 $297,892,502 $25,546,302 91% $44,955,348 57% 01/01/98 $308,596,133 $333,250,492 $24,654,359 93% $47,281,198 52% 01/01/99 $354,088,751 $377,788,731 $23,699,980 94% $49,666,523 48% The information presented in the required supplementary schedules was determined as part of the actuarial valuations at the dates indicated. Additional information as of the latest actuarial valuation follows: Valuation date 01/01/98 Actuarial cost method Frozen Entry Age Amortization method Level Dollar Closed Remaining amortization periods Various Asset valuation method Five Year Average * Actuarial assumptions: Investment rate of return 7.0% Projected salary increases 5.0% Include merit increases 2.0% Cost-of-living adjustments 3.0% * Effective January 1, 1994, the asset valuation method was changed from market value to a five year average method. 17 DRAFT CITY OF CLEARWATER EMPLOYEE'S PENSION PLAN SECTION V - CENSUS DATA A. Reconciliation of Emp loyee Data A summary of changes in the employee data from January 1, 1998 through January 1, 1999 follows. Employees who do not participate in the plan are not included. Retired Terminated Participants Active Vested And Employees Employees Beneficiaries Total Participants included in the January 1, 1998 valuation 1,476 13 451 1,940 Nonvested terminations (23) (23) Data Revisions (1) 1 2 2 Vested terminations (13) 11 2 Deaths without eligible beneficiary (5) (5) Retirements (37) 37 Cash settlements (44) (1) (45) Rehires 5 5 New participants 102 10 112 Participants included in the January 1, 1999 valuation 1,465 24 497 1,986 Active Participants: Fully vested 599 Partially vested 0 Non-vested 866 Total 1,465 !8 i"Y DRAFT CITY OF CLEARWATER EMPLOYEES PENSION PLAN SECTION V - CENSUS DATA (continued) B. A ge - Service Distribution of Active Partici pants as of January 1, 1999 Years of Service Attained 0-4 5 - 9 10- 14 15 - 19 20 - 24 25+ Total Age . No. No. No. No. No. No. No. Earnings Under 25 32 0 0 0 0 32 $ 832,906 25 to 29 104 19 0 0 0 123 $ 3,729,391 30 to 34 116 55 25 0 0 196 $ 6,798,170 35 to 39 71 54 94 35 0 254 $ 9,713,537 40 to 44 71 46 79 68 28 2 294 $11,420,994 45 to 49 43 36 55 58 51 13 256 $10,569,479 50 to 54 27 24 39 29 30 29 178 $ 7,151,477 55 to 59 13 13 12 11 11 12 72 $ 2,921,217 60 to 64 10 17 0 11 8 3 .49 $ 1,712,697 65+ 0 9 1 1 0 0 11 $ 448,246 Total 487 273 305 213 128 59 1465 $55,298,114 Active Participant Statistics Average Age 42.23 years Average Service 10.41 years 19 DRAFT CITY OF CLEARWATER EMPLOYEE'S PENSION PLAN SECTION V - CENSUS DATA (continued) C. Inactive Participant Count and Benefits as of January 1, 1999 Number of Annual Participants Benefit Terminated Vested Participants 24 $ 609,254 Retired Participants and Beneficiaries 497 8,736,788 20 DRAFT CITY OF CLEARWATER EMPLOYEE S PENSION PLAN SECTION VI - ASSUMPTIONS AND METHODS A. Actuarial Methods Investment Yield: The investment rate of earnings is assumed to be 7% per annum. Mortality. Mortality was based on the 1983 Group Annuity Mortality Table for Males with female ages set back six years. Withdrawal: Pre-retirement withdrawals are assumed to occur in accordance with standard scales of moderate turnover rates (Scale 255) for males and heavy turnover rates (Scale 355) for females. Simple rates are shown below: Rate of Withdrawal A&e Male Female 20 14.9% 37.4% 25 9.9% 22.4% 30 6.9% 14.9% 35 4.9% 10.4% 40 2.8% 7.4% 45 1.7% 4.3% 50 0.4% 2.7% 55 0.0% 0.9% 60 and over 0.0% 0.0% Disabilit : Pre-retirement incidence of disability is assumed to occur in accordance with a standard scale of moderate disability rates (Class 1, 1952 Inter-Company). Rates for females are assumed to be double that for males. Sample rates for males are shown below: Age Incidence of Disability 20 .17% 25 .17% 30 .17% 35 .18% 40 .20% 45 .23% 50 .29% 55 .39% 60 .59% 65 1.04% 70 1.74% Service vs. Non-service: Al l pre-retirement deaths are assumed to be non-service related. All incidence of disability is assumed to be service related. Salary Scale: Future salaries are assumed to increase at the rate of 5% per year, 3% due to cost-of- living, and 2% due to merit increases. 21 DRAFT CITY OF CLEARWATER EMPLOYEE'S PENSION PLAN SECTION VI - ASSUMPTIONS AND METHODS (continued) A. Actuarial Assumptions. (continued) Retirement Rate: Each active participant is assumed to retire on the later of the actuarial valuation date or his Normal Retirement Date. Timing of Contribution: The employer contribution is assumed to be made uniformly during the first two quarters of the fiscal year beginning on the October 1 following the valuation date, Employees Covered: All participants as of the actuarial valuation date. Spouses: Eighty-five percent (85%) of the active participants are assumed to be married (or have dependents eligible for Survivor's Benefits). Female spouses are assumed to be five years younger than male spouses. Expenses: Expenses are assumed to equal last year's actual expenses. Completeness of Assumptions: All benefits and expenses to be provided by the Plan are recognized in the valuation. All known events are taken into account; no current trends are assumed to discontinue n the future. B. Asset Valuation Method The Actuarial Value of Assets is based on a five year moving average of assets valued at statement value. The statement value reflects an amortized value for bonds and market value for equity investments. From the statement value, actual and expected return on investments is derived. Any difference between the actual return on investments for a given year and the expected return is spread over five years. After five years the entire amount is fully recognized. However, the Actuarial Value of Assets will never exceed 120% nor fall below 80% of the market value of assets. The use of a derived value of plan assets rather than current market value will produce a more stable funding pattern for the plan by partially eliminating the effect of unusual market fluctuations. C. Actuarial Cost Method The actuarial cost method is the Frozen Entry Age Actuarial Cost Method. Under this method the excess of the actuarial present value of projected benefits over the sum of the actuarial value of assets plus the Unfunded Frozen Actuarial Accrued Liability is funded on a level basis over the future compensation of active employees. The portion of this excess allocated to the current year is called the Normal Cost. The Frozen Actuarial Accrued Liability is determined using the Entry Age Actuarial Cost Method. This Frozen Actuarial Accrued Liability is adjusted from time to time to reflect changes in the Plan or in the actuarial assumptions. The Unfunded Frozen Actuarial Accrued Liability is separately amortized over a fixed number of years. 22 DRAFT CITY OF CLEARWATER EMPLOYEE'S PENSION PLAN SECTION VII - SUMMARY OF PLAN PROVISIONS This summary is intended as an outline of plan provisions and does not alter the intent or meaning of the provisions contained in the contract and / or plan document. Plan Year: January 1 to December 31. Eligibility: Any permanent employee shall participate in the plan immediately. Current Employee Contributions: 8.0% of wages and salaries actually paid to a participant. Average Monthly Compensation: The total Compensation received during the last five years of service divided by sixty. Accrued Benefit: A monthly benefit equal to 2.75% of Average Monthly Compensation multiplied by the number of years of service.to date. Normal Retirement: a. Eligibility (Normal Retirement Date): • Non-Hazardous Duty: Completion of at least 20 years of service and the attainment of age 55, or the completion of 30 years of service. • Hazardous Duty: Completion of 20 years of service. b. Normal Retirement Benefit: The participant's Accrued Benefit payable as of his actual retirement date on or after his Normal Retirement Date . No adjustment applies for deferred retirement beyond his Normal Retirement Date. C. Normal Form of Benefit: A monthly annuity for the life of the participant. After the participant's death, 100% of the Normal Retirement Benefit shall be paid as a Survivor Annuity to the spouse for five years. After five years, such Survivor Annuity is reduced to 50% of the original amount. The Survivor Annuity ceases upon death or remarriage of the spouse. Disability Benefit: a. E1iJbility: Total and permanent disability. If the disability is non-service connected, there is an additional requirement of the completion of 10 years of service. b. Disability Benefit: The participant's Accrued Benefit, payable immediately. If the disability is service connected, the Disability Benefit must be at least 66.67% of Average Monthly compensation. C. Form of Benefit: A monthly annuity for the life of the participant. After the participant's death, a Survivor Annuity is provided as described under the Normal Form of Benefit. 23 DRAFT CITY OF CLEARWATER EMPLOYEE'S PENSION PLAN SECTION VII - SUMMARY OF PLAN PROVISIONS (continued) Death: a. Eligibility: Any actively employed participant. b. Death Benefit: The participant's Accrued Benefit, payable immediately. If death is service connected, the Death Benefit must be at least 66.67% of Average Monthly Compensation. c. Form of Benefit: A monthly Survivor Annuity as described under the Normal Form of Benefit. Vested Termination: a. Eligibility: Completion of 10 years of service b. Termination Benefits: The participant's Accrued Benefit payable as of his Normal Retirement Date, provided Employee Contributions are not refunded. c. Form of Payment: A monthly annuity for the life of the participant. After the participant's death, a Survivor Annuity is provided as described under the Normal Form of Benefit, beginning at the latter of the participant's Normal Retirement Date or date of death. Non-Vested Termination: a. Eligibility: Any actively-employed participant. b. Benefit: Refund of Employee Contributions with 5% interest. c. Form of Benefit: Lump sum. 24 n M 00 O CN n QM M 00 0 0 ON ? O N .`a 01 t N N Nt 06 v1 ? 06 O DRAFT M M ? Q Q Q N Q Q Q Q Q of 0 Czzz z z z z z 00 r4 C 64 O z N Q Q Q ?zzz It Q Q ¢ Q Q z z z z z N O W 60% a z 0 ? 0 z W _w V C G a _ a o w ? a ? d ? a CN d ? o V E ? A V V1 ?O ? tt M n ..r ry M N 4 t .... ? O N M %l0 N 64 bq ?¢¢¢ ON a Czzz z z tr) N C M v? 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'u l O cO G : . c a a w F- ? w E- %n C> CA DRAFT O 00 O O N M N im ? V ') 4 N 6 A K f j% &n 6 9 (H O O ? N ? O O a 00 ?0 M Q? 00 00 - %n ("I CNI 00 O T M N } C (I) N d .-+ 49 U4 fi/ 69 fA 69 z 0 ° 0 00 o? ?CIA r0 cp? C4 O 1 0 z C) ? -- ?r \ O 00 ? CYN O x fA 60% 6q 69 fR FA z a z o ? Z w C) t- 0 0 ?O ItT " M ?D l rT k,6 110 00 en N ? Cr ? Cl N CL Q? E.. -NT M N t- 0 O • ^ a C v".4 f09 fA 601) 6q 69 64 a a •-i ? W y O O CD O M - - M C) O O t r a C Z O O M M N O 72 N N N O 00 J O 0 0 ? V'1 00 ON kn CIA t- tn M3 "? cli 6I3 fA fA 69 69 69 U cv ? c a o© V of %O It 00 O N V C 0 n 0 a" 0 0 M O 0 N- to ? •? O ?• % 0 00 ? N O U NN ?p f 00 i . C13 00 Z - V f? f19 fury f!? cu 0.4 V CA C4 a? r . U U Z .. fv C13 O ..O 3 L4 ?- y ? Q c E a. tn > * «f Q b R) O ¢ * e a "O o °' Q o y to (U "a a v o A , Q V R C ?+ (? ? O 0 co U¢ m r z o a 4) 4) Q ua CV CC Q C? w co co C7 Z Cl. w ti GO. w Employees Pension Plan Agenda Cover blemorandam Agenda Item # Meeting Date: 9. t6•R I - - SUBJECT / RECOMMENDATION: Accept the Actuary's Report for the Employees' Pension Plan for the plan year beginning 1/1/99 . [ ] and that the appropriate officials be authorized to execute same. SUMMARY: • The 1/1/99 actuarial report for the Employees' Pension Plan indicates no City contribution is required. However, the City Ordinance governing the pension plan requires that the city contribute at least 7% of the compensation of all employees participating in the plan (estimated at $3,476,657). • The difference between the required contribution of $3,476,657 and the actuarial determined contribution of $-0- will be added to the existing credit balance, currently at $6,812,956. The new credit balance is estimated to be $101289,613. • The funded status of the plan increased from 165% at 1/1/98 to 174% at 1/1/99. • The Employees' Pension Plan experienced a fourth consecutive year of excellent investment performance. The market value basis performance for the last four years (1995, 1996, 1997, and 1998, respectively) has been 23.36%,14.80% 17.49%, and 16.74%. • The draft Actuary Report is available in the City Clerk's Office for review. Reviewed by: Originating Dept: Costs Legal N/A Info Srvc N/A Finance Total N/A Budget "Y11- Public Works NIA User Dept. Funding Source: Purchasing NIA DCM/ACM Current Cl FY Risk Mgmt N/A Other N/A Attachments OP Other Submitted by: City Manager ? None Appropriation Code: Printed on recvcted Gaper Rev. 2/98 TO: Trustees of Em loyees Pension Fund FROM: Pamela K. Aki , City Attorney LLes , Q 0 11 .111010 U ONE CITY. ONE FUTURE. City Attorney's Office Memorandum RE: Legal Services Agreement with Christiansen & Dehner Pension Attorney Services DATE : July 28, 1999 In accordance with your direction, the attached legal services agreement for pension attorney services is being submitted to you for your approval. PKA:jmp Copy to: Michael J. Roberto, City Manager Exhibit A & B to agreement available for review in City Clerk Department LEGAL SERVICES AGREEMENT THIS AGREEMENT is made on the ? 4day of I ?a .. 1999, b and between the BOARD OF TRUSTEES OF THE EMPLOYEES' PENSION PLAN of the CITY OF CLEARWATER, FLORIDA, P.O. Box 4748, Clearwater, Florida 33758-4748 (the "Board') and the law firm of CHRISTIANSEN & DEHNER, P.A., 63 Sarasota Center Boulevard, Suite 107, Sarasota, Florida 34239 ("Counsel'). WITNESSETH: WHEREAS, the Board Issued Request for Proposals #10-99 for Pension Attorney Services, attached hereto as Exhibit 'A', and Counsel Issued a Response to Request for Proposals #10-99, attached hereto as Exhibit .B"; and WHEREAS, the Board wishes to retain Counsel to provide Pension Attorney Services to the Board pursuant to Request for Proposals #10-99 and Counsel's Response to Request for Proposals #10-99. NOW, THEREFORE, in consideration of the promises and mutual covenants herein contained, the parties hereto do hereby agree as follows: SECTION 1. AUTHORIZATION TO PROCEED AS COUNSEL. Counsel is hereby authorized to provide pension attorney services as described in Request For Proposals #10-99 and for the professional fees described in this Agreement. SECTION 2. SCOPE OF SERVICES. Counsel hereby agrees to provide pension attorney services to the Board pursuant to Request for Proposals #10-99 and Counsel's Response to Request for Proposals #10-99. SECTION 3. TERM. This Agreement will be effective for one (1) year from the date of execution, terms and aendifiene in this AqFeemenL SECTION 4. PROFESSIONAL FEES FOR SERVICES. The Board and Counsel agree to a rate of $180.00 per hour for attorney services, and $90.00 per hour for travel time, plus reimbursement for reasonable compensable expenses subject to Board approval. SECTION 5. COMPENSABLE EXPENSES. Reimbursement of expenses shall be made by the Board to the firm for reasonable out-of-pocket expenses as determined by the Board without markup, including but not limited to long distance calls and facsimiles, copying or reproducing documents, postage, court costs, parking costs and travel incurred by Counsel in performance of the duties hereunder. Travel and per diem costs as well as auto travel expenses shall not exceed that which is available to City of Clearwater employees. SECTION 6. INDEMNIFICATION AND INSURANCE. Counsel agrees to protect, defend, indemnify and hold the Board and its officers, employees and agents free and harmless from and against any and all losses, penalties, damages, settlements, casts, charges, professional fees or other expenses or liabilities of every kind and character arising out of or due to any negligent act or omission of Counsel, its employees, agents and subcontractors In connection with or arising directly or indirectly out of this Agreement and/or the performance hereof. Without limiting its liability under this Agreement, Counsel shall procure and maintain during the life of this Agreement professional liability insurance in an amount of $2,000,000. This provision shall survive the termination of this Agreement. SECTION 7. CONFLICT OF INTEREST. It is understood by the Board and Counsel that Counsel is not aware of any clients of the firm that currently present any conflict between the interests of the Board and other clients of Counsel. If any potential conflict of interest arises during the time Counsel is representing the Board, Counsel will promptly inform the Board. The Board Is under no obligation to agree to permit the conflict representation. SECTION 8. CONSTRUCTION AND AMENDMENTS. This Agreement shall be governed by and construed in accordance with the laws of the State of Florida. This Agreement may be amended only by a writing duly entered into by the Board and Counsel. SECTION 9. CANCELLATION OF AGREEMENT. The Board may cancel or terminate this Agreement upon ten days advance written notice to Counsel. In the event of cancellation, Counsel shall immediately cease work hereunder and shall be reimbursed for eligible and documented reimbursable expenses incurred prior to the date of cancellation. Further, it is understood and agreed between the Board and. Counsel that H. Lee Dehner and Scott R. Christiansen will be the lead attorneys assigned by the firm to provide the services contained herein. The Board in its absolute discretion may immediately terminate this Agreement upon written notice to the firm if the services of this attorney are unavailable to the Board. IN WITNESS WHEREOF, the Board and Counsel have executed this Agreement as of the date first written above. BOARD OF TRUSTEES OF THE EMPLOYEES' PENSION PLAN of the CITY OF CLEARWATER, FLORIDA By: Bria . Aungst Chairperson A r ved as to form A est: r Pamela K. Akin Cy is E. Goudeau City Attorney City lark CH By: Its 2 RFP 19-99 CITY OF CLEARWATER, FLORIDA REQUEST FOR PROPOSALS FOR PENSION ATTORNEY SERVICES A. INTRODUCTION 1 BACKGROUND The City of Clearwater (hereinafter 'City') Is requesting proposals from qualified firms of pension attorney services in providing legal and other related services to the City of Clearwater Employees' Pension Plan (hereinafter 'Plan'). A Selection Committee (hereafter 'Committee7, has been formed to facilitate the selection process. The Committee Is composed of We (5) City appointees. The Plan Is a contributory, defined benefit pension plan for eligible City employees. Members presently contribute 8.0% of their earnings on a pre-tax basis to the plan until time of retirement, while the City contributes the balance required as determined by the actuarial valuation. The Plan requires a minimum City contribution of 7.0%. This Plan Includes a disability retirement provision for members who become disabled. The Employees' Pension Plan Is governed by the members of the City Commission who serve as the Plan Trustees. The City is a City Manager/Commission form of local govemment which offers a traditional mix of municipal services to a population of approximately 104,000. For the 1998199 fiscal year, the total of an City operating and capital budgets 1s approximately $192 million. Of this amount $73.4 million is budgeted for the General Fund, $70.7 million for proprietary fund activities, and 48 million for capital budgets. The proprietary fund activities b dude primarily the provision of water, sewer, gas and sanitation utility services and the operation of a tog bridge, marina and parking facilities. The City employs approximately 1,700 persons. over 1,450 of whom are members of the Employee Pension Plan. The Plan assets had a market value of $358 million as of January 1, 1998. Section 2.3940 of the Code of Ordinances provides that the Board of Trustees, (Trustees are the procurement entity) may retain counsel and other advisors for the Pension Plan. Note that the same Section provides that'(tjhe Trustees are authorized to pay for such services from the Pension Fund.' B. REQUIRED SERVICES AND PERFORMANCE STANDARDS The Board of Trustees of the General Employees Pension Fund.intends to establish an agreement for the services of an Attomey to serve as counsel to the Board and the Pension Advisory Committee. The Attorney must be able to provide a full scope of legal services and demonstrate experience in providing legal advice, document and ordinance preparation, and litigation in the area of public pension law. Anticipated contract period is for a 3 year period with option to terminate thrv notice. The required services include, but are not limited to, Me following: A. Attend meetings of the Board of Trustees and Pension Advisory Committee and provide advise to those bodies regarding agenda items coming before them; Request For Propoals For Pension Attorney Services ia44 CHI of Clearwater. Florida RFP 110." EXHIBIT W B. Perform research on legal Issues as directed by the Board and Committee and render legal opinions to those bodkfs; C. Represent the Committee in determining eligibility of applicants for disability and other pension benefits; D. Provide advice on Sunshine Law and Public Records Act Issues; E. Advise the Board and Committee regarding provisions of state and federal pension and tax law and, as directed by the Board, recommend changes to the pension ordinance and procedures necessary to comply with law; F. Draft amendments to Me pension ordinance as directed by the Board; G. Represent ft Board and Committee as directed by the Board In iilfgation arising out of administration of the pension plan. H. Perform other services as directed by the Board. C, QUALIFICATIONS AND OTHER FACTUAL INFORMATION (1) Firm Quallficatlons A. licate size of firm, organizational structure, location of offices, location of relevant attomeyslsupport staff and amount of travel time necessitated for them to attend meetings in Clearwater, admissions to The Florida Bar and occ:upationW licensing. B. Describe your firm's experience In the area of public pension law, Including representation of local government enWkslpension funds, litigation of pension law Issues. and drafting of pension and related ordinances. C. Describe technical resources available to your firm such as computerlnternette-mail capability and access to specialized legal research databases. D. Please list your most recent clients within the State of Florida, Including the names, addresses, and phone numbers of contact persons; briefly describe the services performed for these cants. E. Include the capability of your firm to hold harmless, indemnify and defend ft City for losses, costs and expenses arising from liability claims resulting from alleged negrgence or malpractice of your firm, its officers. employees and subcontractors; describe liability insurance coverage carried by your firm. F. Provide information on any litigation your firm has been a party to during the past three (3) years. (2) Familiarity with GASB Statement Requirements Please indicate your familiarity with GASB Statement requirements relating to Pension Plans by providing a brief summary of the requirements and your experience in providing required attorney services. Request For Propoals For Ponslon AttomAy 3orvrces 2144 Cky of Ckw"tw, FWft RFP MCI-" s (3) Qualifications of Personnel to be Assigned Provide resumes of the personnel who would be directly involved in performing services for the City, including but not limited to: (1) formal and supplemental education; (11) Experience in performing pension attorney serAws and consultation regarding employee benefit programs including govemmental client names where possible; (III) Knowledge of State of Florida regulatory requirements applying to municipal pension plans; (IV) Memberships In professional organizations; and (V) Professional recognition and awards. A Describe the education and experience, particularly as it relates to representation of Florida public pension plans, of each staff member to be assigned to the engagement Indicate notable achievements such as books or articles written, memberships, offices held In professional organizations. and major litigation handled. Include all state bar admissions and board certifications for attorneys and certifications for paralegals. 8. For each attorney, give an indication of the extent of his or her availability. (4) Costs to Provide the Various Services A. Provide full information on the cost for each of the required services identified in Section 8 of the RFP including whether or not the fee Is on the project basis and the total cost, on an hourly basis and the estimated number of hours and total costs, and any other costs which would be reasonable expected to be incurred as a result of the performance of the service. E. INDEMNIFICATION AND INSURANCE REQUIREMENTS Indemnification: The proposer shall hold harmless, indemnify and defend the City, its elected officials, officers and employees, against any claim, action, lawsuit, loss, damage, injury (whether mental or physical, and include death to persons, or damage to property), liability, cost and expense of whatsoever kind or nature including, but not by way of limitation, attorney's fees and court costs, caused by negligent acts or omissions of Pension Attorney Services. The City shall also be held harmless against all claims for financial loss with respect to the provision of or failure to provide professional or other services resulting in professional malpractice, or errors or omissions liability arising out of performance of the agreement or contact, unless such claims are a result of the City's own negligence. Request For Proposis For Pension Attorney Services City of Clearwater, Florida RFP /10-tg Insurance (1) Without limiting its liability under the contract, the proposer shall procure and maintain at Its sole expense during the life of the contract, Insurance of the types and the minimum amounts stated. Type Amount Professional Liability $2,000,000 Comprehensive or commercial General Liability $500,000 Comprehensive or business Automobile Liability $500,000 Workers' Compensation Coverage as imposed by State Law $ Statutory Employers Liability $1001000/$100,000/$500,000 (2) The proposer comprehensive general liability policy shall include contractural liability on a blanket or specific basis to cover this indemnification. (3) Such insurance shall be written by a company or companies licensed to do business in the State of Florida and satisfactory to the City. Prior to commencing any work under this contract, certific ,has evidencing the maintenance of said Insurance shag be furnished to and approved by tha Clty's Risk Management Divlslon. (4) The Insurance wverages and conditions required shall not be suspended, voided, canceled or modified except after thirty (30) days prior written notice has been given by certified mail, return receipt requested, to the City's Risk Management Division Office. (5) The City may, at its option, require a copy of the Proposees insurance policies. (6) All insurance policies required within this RFP and any contract subsequently entered Into between the parties shall provide full coverage from the first dollar of exposure unless otherwise stipulated. No deductibles or self-insurance retention wilt be accepted without prior approval from the City. The proposer's deductibie/Self-insurance retentions (SIRs) shall be disclosed to the City and may be disapproved by the City. They shall be reduced or eliminated at the option of the City. The proposer is responsible for the amount of any deductible or SIR. (7) Except for workers' compensation and professional liability insurance, the proposer's insurance policies shall be endorsed to name the City as an additional insured to the extent of the City's Interest Request For Propoab For Pension Attorney services !a4; City of Clearwater, Florida RFP #1049 (8) Insurance required of the proposer or any other Insurance carrtod by the proposer shelf be considered primary and any Insurance of the City shall be considered excess as may be applicable to claims under any contract or agreement between City and proposer. (9) Any party providing services or products to the City will be expected to enter Into a written agreement, contract, or purchase order with the City that Incorporates, either In writing or by reference, all of the pertinent provisions relating to Insurance and insurance requirements as contained herein. A failure to do so, may, at the sole discretion of the City, disqualify any party from performing services or selling products to the City provided however, the City reserves the right to waive any such requirements. (10)lf a claims made form of professional liability coverage is provided, the retroactive date of coverage shall be no later than the inception date of claims made coverage, unless prior policy was extended Indefinitely to cover prior acts. Coverage shag be extended beyond the policy year either by a supplemental extended reporting period (ERP) of as great duration as available and with no less coverage with reinstated aggregate Hmits, or by requiring that any new policy provide a retroactive date no later than the inception date of claims made coverage. F. RFP TIME TABLE The anticipated schedule for the RFP and contract approval Is as follows: RFP available for distribution Deadline for receipt of questions Deadline for receipt of proposals Evaluation ! Selection process: November 17, 1998 December 17. 1998 Tuesday. January 12, 1999, 4:00p.rm Review of proposals Tuesday. January 19, 1999 Selection of Candidates to make presentations Week of January 18, 1999 Staff Recommendation City begins contract negotiations Recommendation to Pension Trustees G. RFP AVAILABILITY Request For Propoals For Pension Attorney Servkss au Tuesday. January 26. 1999 Tuesday. January 26, 1999 Monday, March 1, 1999 CRY of Clear**W, Florida RFP 01049 Copies of the RFP are available by contacting George McKibben at (727) 5824634, or by visiting the Purchasing Division located at the Municipal Services Building, Vd Floor, Finance Department, 100 ' South Myrtle Avenue. Clearwater, Florida 33756-5520. H. PROPOSAL. SUBMISSION One original and five coples (a total of six) shall be delivered to the City of Clearwater, Purchasing Manager, 100 South Myrtle Avenue, Clearwater, FL 33758-5520, prior to the opening time of 4:00 p.m., EDT, on Tuesday, January 12, 1999. Proposals shall be as brief and to the point as possible while still meeting proposal requirements. The delivery of proposals to the City of Clearwater Purchasing Office prior to the specified date and time Is solely and strictly the responsibility of the proposing firm. The City shall not, under any circumstances, be responsible for delays caused by the United States Postal Service or any private delivery service, or for other delays. All responses must be manually and duly signed by an authorized authority to bind said firm, and proposer(s) must affix their compan)(s corporate seal to the Proposal. In the absence of a corporate seal, the Proposal must be notarized by a Notary Public. The submittal of a proposal by a preparer will be considered by the City as constituting an offer by the Proposer to perform the required services at the stated fees. The stated fees shall be considered locked in for 180 days from the time of receipt. All responses must be marked on the outside: "Request For Proposal for Pension Attomey Services for the City of Clearwater, Florida RFP 10-99 To be opened at 4:00PM, EDT, January 12,1999" Each proposer Is solely responsible for reading and completely understanding the requirements of this RFP. The opening time shah be and must be scrupulously observed. Under no circumstances wi l proposals delivered after the specified delivery time be considered. Late submissions shall be. returned unopened to the firm with the notation "The Proposal was received after the delivery time designated for the receipt and opening of the proposals." All proposals shall be prepared and submitted In accordance with the provisions of this RFP. However. the City may waive any informalities, irregularities, or variances, whether technical or substantial in nature, or reject any and all proposals at its discretion. Any proposal may be withdrawn prior to the indicated time for opening of proposals for authorized proponed thereof. No firm may withdraw a proposal within ninety (90) days after the actual date of the proposal's opening. Promotional material may be Included as supplemental information, but will not constitute a proposal itself. 1. INQUIRIES AND ADDENDA Request Far Propoal For Pension Attomey 3ervlces no City of Clearwrabw, Florida RFP 11Q-99 Each Arm shall examine all RFP documents and shalt judge all matters relating to the adequacy and accuracy of such documents. Any Inquiries, suggestions or requests concentini Interpretation, clarification, or additional Information pertaining to the RFP shall be made In writing a minimum of five (5) working days prior to due date through the City of Clearwater's Purchasing Manager, George McKibben, at P.O. Box 4748, Clearwater, Florida 33758-4748; or FAX 727-562-4635. Facsimiles must have a cover sheet which includes, at a minimum, the propser's name, address, number of pages transmitted, phone number, and facsimile number. It Is the proposer's responsibility to be sure all addenda were received. The City shall not be responsible for oral interpretations given by any City employee, representative, or others. The issuance of a written addendum is the only official method whereby Interpretation, clarification, or additional Information may be given. If any addenda are Issued to this RFP, the City will attempt to notify all prospective firms who have secured same. However, it shag be the responsibility of each firm, prior to submitting the proposal, to contact the City of Clearwater's Purchasing Manager (727-562-4634) to determine K addenda were issued and to make such addenda a part of the proposal. J. ' LATE PROPOSALS , LATE MODIFICATIONS, AND LATE WITHDRAWLS Proposals received after the Proposal Due Date and time are late and will not be considered. Letters of withdrawals received after the Proposal Due Date or after contract award, whichever is apptkable, are late and will not be considered. K. RFP POSTPONEMENT ! CANCELLATION The City may, at its sole and absolute discretion, reject any and all, or parts of a?ny and aft, proposals; re-advertise this RFP; postpone or cancel, at any time, this RFP process; or waive any minor or immaterial irregularities In this RFP or in the proposals received as a resuft of this RFP. L. COSTS INCURRED BY PROPOSERS All expenses involved with the preparation and submission of proposals to the City, or any work performed In connection therewith shall be bome by the proposer(s). No payment will be made for any responses received, nor for any other effort required of or made by the proposer(s) prior to commencement of work as defined by a contract approved by the City Commtsslon. M. ORAL PRESENTATION A formal oral presentation may be required by each firm that Is selected during the initial review process (at the sole option of the City). If required, presentations should be in support of the firm's proposal or to exhibit or otherwise demonstrate the information contained therein. If the Committee wishes additional clarification of any information or additional information, any of the firms may be requested to submit that information in writing. N. EXCEPTION TO THE RFP Proposers may take exceptions to any of the terms of this RFP unless the RFP specifically states where exceptions may not be taken. Should a proposer take exception where none Is permitted, the Request For Propools For Pension Attomey Services Za44 City of Clearwater, Florida RFP HO-" proposal will be rejected as non-responsive. Ali exceptions taken must be speclflc, and the Proposer must Indicate clearly what alternative is being offered to a" the City a meaningful opportunity to evaluate and rank proposals. Where exceptions are permitted, the City shall determine the acceptability of the proposed exceptions and the proposals will be evaluated based on the proposals as submitted, The City, after completing evaluations, may accept or reject the exceptions, Where exceptions are rejected, the City may request that the Proposer furnish the services or goods described herein, or negotiate an acceptable altemative. 0. PROPRIETARY INFORMATION Responses to this Request for Proposals upon receipt by the City become public records subject to the provisions of Chapter 119 F.S., Florida's Public Records Law. If you believe that any portion or all of your response Is confidential and/or proprietary, you should clearly assert such exemption and the specific legal authority of the asserted exemption. All material that you assert qualifies for exemptlon from Chapter 119 must ba submitted in a separate envelope, clearly Identified as TRADE SECRETS EXCEPTION% with your firm's Aarne and the proposal number marked on the outside. Please be aware that the designation of an item as a trade secret by you may be challenged In court by any person. By your designation of material in your proposal as a `trade secret" you agree to hold harmless the City for any award to a plaintiff for damages, costs or attorneys' fees and for costs and attorneys' fees incurred by the City by reason of any legal action challenging your claalm. You may be required to pay any costs of fees incurred in defending such a charge if the City declines to do so. P. NEGOTIATIONS The City may award a contract on the basis of initial offers received, without further negotiations or may negotiate a final contract. Therefore, each Initial offer should contain the proposer's best terms from a cost or prince and technical standpoint. The City reserves the right to enter into contract negotiations with the selected Proposer. If the City and the selected proposer cannot negotiate a successful contract, the City may terminate said negotiations and begin negotiations with the next selected proposer. This process will continue until a oontract has been executed or an proposers have been rejected. No proposer Shall have any rights against the City arising from such negotiations. Q. RIGHT TO PROTEST Any actual or prospective Proposer who Is aggrieved in connection with the solicitation or award of a contract may seek resolution of its complaints by contacting the Purchasing Manager. R. RULES; REGULATIONS; LICENSING REQUIREMENT The proposer shall comply with all laws, ordinances and regulations applicable to the services contemplated herein, including those applicable to conflict of interest and collusion. Proposers are presumed to be famiilar with all Federal, State and local laws, ordinances, codes and regulations that may in any way affect the services offered. Request For Propoals For Pension Attorney SerAss N" City of Clearwater, Florida RFP No-" 1 i S. GENERAL The evaluation and ranking of all competitive proposals received shall be accomplished utilizing the criteria described in this Section. Information and data Included in the Actuarial Services proposal shall be considered in the evaluation and ranking process. T. COMPLETENESS OF COMPETITIVE PROPOSALS Following the receipt of competitive proposals, the City shall review all proposals with respect to pieteness and conformance with the instructions and requirements specifically Indicated in this RFP. Proposals which are deemed incomplete and/or non-conforming with instructions and requirements of this RFP may not be given further evaluation. The City reserves the right to reject any or all proposals and to waive any Irregularity, variance or informality whether technical or substantial in nature, In keeping with the best interest of the City. U. SELECTION CRITERIA All proposals shall be equally evaluated with respect to the completeness of the data provided. support for all claims made, and the overall approach taken. The following criteria shall be utilized In the evaluation of the proposal: (1) Organization, size. structure and technical resources of the turn. Knowledge of Florida public pension law, including successful experience representing local government pension plans in Florida. Experience In pension litigation and pension ordinance drafting (2) Responsiveness and completeness of the written proposal to these instructions with regard to scope of services and qualifications of the fum. Ability to communicate legal concepts to non-attorneys. Qualifications and avarlabirdy of key personnel to be assigned to the Board of Trustees and Pension Advisory Committee (3) Evaluation of proposed fee schedule. (4) Reports from References All proposals shall be equally evaluated with respect to the completeness of the data provided, support for all claims made, and the overall approach taken. The following weighting shall be utlliied in the evaluation of the proposals. 309E (1) Firm Quaiifrcatlons 30% (2) Qualifications of Personnel to be Assigned Request For Proposis For Pension Attorney Services Rio City of Cteuvva W, Florlda RFP 01049 30% 10% i (3) Costs to Provide the Various Services (4) References References may be called regarding the level of satisfaction with services rendered by the proposing firm, technical ability, cost, education of and presentation to governing bodies. Request Far Propoals For Penslon Attorney Services ,1Q244 City) of Clearwater. Florida RFP 910M RESPONSE TO RFP FOR CITY OF CLEARWATER PENSION ATTORNEY SERVICES C USTIANSF.N & DEHNER, P.A. 63 SARASOTA CENTER ]BOULEVARD SUITE 10'1 SARASOTAq FLORIDA 34239 (941) 377-2200 1 MILBIT "B" REPLY TO REQUEST FOR PROPOSALS FOR PENSION ATTORNEY SERVICES CMXSTTANSEN & DEHINER, P.A. QUALIFICATIONS AND OTHER FACTUAL INFORMATION TABLE OF CONTENTS 1. FIRM QUALIFICATIONS 1 A. SIZE OF FIRM 1 ORGANIZATIONAL STRUCTURE 1 LOCATION OF OFFICES 1 LOCATION OF RELEVANT ATTORNEYS AND STAFF 1 TRAVEL TIME 1 FLORIDA BAR ADMISSIONS 1 B. FIRM'S EXPERIENCE IN PUBLIC PENSION LAW 1 C. TECHNICAL RESOURCES AVAILABLE TO TEE PERM 1 D. MOST RECENT FLORIDA CLIENTS 2 E. INDE INMCATION AND INSURANCE 3 F. UTIGATION IN WHICH THE FIRM WAS A PARTY WITHIN THE LAST THREE XRAItS 4 2. FAMILIARITY WITH GASB STATEMENT REQLTREMENTS 4 3. QUALIFICATIONS OF PERSONNEL TO BE ASSIGNED 4 H. LEE DEHNER 4 SCOTT CHRISTIANSEN S FIRM'S GOVERNMENTAL CLIENTS S 4. COSTS TO PROVIDE THE VARIOUS SERVICES 7 (1) Firm QualiRcations A. Size of Firm - Two attorneys and four support staff. Organizational structure - Christiansen and Dehner, P.A. is a professional association organized under the laws of the State of Florida with Mr. Dehner and Mr. Christiansen being equal shareholders of all issued and outstanding stock. Mr. Dehner is President and Mr. Christ un.S.C : is :,*iic Nesiuent and Secretary. Location of office - 63 Sarasota Center Boulevard, Suite 107, Sarasota, Florida 34240. Location of relevant attorneys and std'- 63 Sarasota Center Boulevard, Suite 107, Sarasota, Florida 34240. Travel time - 3 hours round trip. Florida BarA&nlsslons - Mr. Dehner was admitted to the Florida Bar on May 31, 1977 and Mr. Christiansen was admitted on October 16, 1973. The firm is authorized to operate a law office in Sarasota County pursuant to an occupational license issued by the county. B. Firm's experience in public pension law - Ile firm has represented local government pension funds in the State of Florida since 1979 and primarily limits its practice to such representation. Over 130 funds are represented in 76 caries and districts. Advice and representation is provided in all areas of law applicable to public retirement funds including, but not limited to, fiduciary responsibilities, liabilities, administrative hearings and procedures, - tax issues, disabilities, forfeitures, benefits, plan design, filing rNuiremmts, drafting of all plan documents (including ordinances and all documents regcured for legal and prudent plan administration and compliance with all applicable state and federal laws). C. Technical resources available to the firm - The firm is fully computerized to handle all internal functions. Word processing, accounting and billing are all accomplished utilizing software designed for these functions. The office staff are all provided with workstations connected through an internal network. All personnel have access to the Internet and all have e-mail capability. Legal research is conducted through resources provided by West Group and we have full access to WESTLAW to provide current legal information and updating. Access to the Internet provides additional legal resources including the monitoring of federal and state legislation. Additional resources include various subscription services and organizations in which we are active members such as the National Association of Public Pension Attorneys. -l- D. Most recent Florida Cients{recent r endow, recent services, various geographical locations). CITY OF APOPKA MUNICIPAL POLICE OFFICERS', FIREFIGHTERS' AND GENERAL EMPLOYEES' RETIREMENT TRUST FUNDS Ms. Connie Major, City Clerk City of Apopka 120 East Main Street Apopka, Florida 32703 CITY OF CLEARWATER FIREFIGHTERS' SUPPLEMENTAL TRUST FUND Mr. Robert Lockwood, Chairman City of Clearwater Firefighters' Supplemental Trust Fund 610 Franklin Street Clearwater, Florida 33756 CITY OF CLEARWATER POLICE OFFICERS' PENSION FUND Mr. William Sedrick, Chairman City of Clearwater Police Officers' Pension Fund 645 Pierce Street Clearwater, Florida 33756 CITY OF DAYTONA BEACH POLICE AND FIRE DEPARTMENT PENSION FUND Mr. Dwayne Taylor, Chairman City of Daytona Beech Police and Fire Department Pension bind 301 South Ridgewood Avenue Daytona Beach, Florida 32114 CITY OF FORT MYERS MUNICIPAL FIREFIGHTERS' PENSION TRUST FUND Chief Richard Cbappelle City of Fort Myers Municipal Firefighters' Pension Trust Fund 2402 Dr. Martin Luther King Jr. Boulevard Fort Myers, Florida 33901 CITY OF KISSUAME MUNICIPAL FIREFIGEnT.RS' RETIREMENT PLAN Mr. Robert Jock, Chairman City of Iissimmee Municipal F'irefighters' Retirement Plan 101 North Church Street Kissimmee, Florida 34741 CITY OF NEPTUNE BEACH POLICE OFFICERS' AND FIREFIGHTERS' RETIREMENT SYSTEM Officer Larry Dean, Chairman City of Neptune Beach Police Officers' and F'irefighters' Retirement System 200 Lemon Street Neptune Beach, Florida 3226"100 -2- CITY OF OCALA EMPLOYEES' PENSION SYSTEM Dr. Oel Wingo, Assistant City Manager City of Ocala Post Office Box 1270 Ocala, Florida 34478 TOWN OF ORANGE PARK FIREFIGHTERS' RETIREMENT PLAN Mr. Larry Dumas, Chairman Town of Orange Park Firefighters' Retirement Plan 331 Stowe Avenue Orange Park, Florida 32703 CITY OF SARASOTA POLICE OFFICERS' PLANS Ms. Benita Saldutti, Pension Administrator City of Sarasota Post Office Box 1068 , Sarasota, Florida 34230 AND GENERAL EMPLOYEES' PENSION CITY OF ST. PETE BEACH GENERAL EMPLOYEES' RETIREMENT SYSTEM Ms. Colette Graston, Secretary City of St. Pete Beach General Employees' Retirement System 7701 Boca Ciega Drive St. Pete Beach, Florida 33706 QTY OF TALLAHASSEE PENSION PLAN Mr. Steve Chase, Retirement Administrator City of Tallahassee 300 South Adams Street Tallahassee, Florida 32301 QTY OF VENICE GENERAL EMPLOYEES' R ETIREMENT PLAN Mr. Milne McPhail, Finance Director City of Venice 401 Nest Venice Avenue Venice, Florida 34285 CITY OF WINTER HAVEN, FLORIDA EMPLOYEES' RETIREMENT PLAN Mr. Calvin Bowen, F'uaance Director City of Winter Haven Post Office Box 2277 Winter Haven, Florida 33883-2277 Services perfoniW for all of our clients are comprehensive and include those listed in the response to (1) B. above and in Section B of the RFP. E. Indernniftcation and insurance - The firm has the capability to bold harniless, indemnify and defend the City from liability claims resulting from negligence or malpractice of the firm, its officers, employees and subcontractors. The Legal -3- Professional Liability Insurance carried has limits of 1,000,000 per claim with a 3,000,000 annual aggregate and a $5,000.00 deductible. The firm has never had a claim filed against it. F. Litigation In which the f irm was a party within the last 3 years - The firm has never been a party to any litigation. (2) Familiarity with CASE Statement Requirements We are familiar with the primary requirements of the Governmental Accounting Standards Board applicable to public pension plans. They require the disclosure of actuarial and financial data pertaining to the plan. Paragraph 37 of Statement No. 25 requires a schedule disclosing funding progress. Unless the Aggregate Actuarial Cost Method is used for funding, Paragraph 38 of Statement No. 25 requires a schedule disclosing, contributions from the employer and other entities (i.e. State of Florida). Statement No. 27 requires disclosure of annual pension costs and information related thereto, three year trend information on annual pension cost, percentage of annual pension cost contributed and the net pension obligation. We review the valuation reports prepared by our clients' acumdes for compliance. (3) Qua ' 'cations of Personnel to be Assigned - Lee Dehner was admitted to the Florida Bar in 1977 and has represented municipal pension plans in Florida since 1979. liis practice is comprehensive in the representation of local govenmwnt employee retirement plans in Florida. He provides advice and representation in all areas. Mr. Dehner has been a regular speaker at pension conferences and trustee schools sponsored by the State of Florida, Division of Retirement and Florida State University and the Florida Public Pension Trustees' Association for 15 years. He has been active in legislative matters concerning Florida municipal pension plans though committee membership, drafting of proposed statutory amendments and testifying before state agencies and committees of the State House of Representatives and Senate. His knowledge of state and federal regulatory mWirements is thorough and comprehensive. His consultation and advice is frequently sought by state agencies and representatives of municipal pension plans. Mr. Dehner is a member of the National Association of Public Pension Attorneys, the Florida Public Pension Trustees Association and the International Foundation of Employee Benefit Plans. He is an elected member of Who's Who in Practicing Attorneys. He is also a n-xrnber of the American Bar Association, the Sarasota County Bar Association, the Florida Bar Association and the Labor and Employment Law, Local Government Law, Tax Law and Administrative Law Sections. -4- Scott Christiansen graduated from the University of South Florida with a Bachelor of Arts Degree in 1970 and from the University of Florida College of Law with a Juris Doctorate Degree in 1973. He was admitted to the Florida Bar in 1973, the U.S. Court of Military Appeals in 1974, the U.S. District Court for the Middle District of Florida in 1978 and the U.S. Supreme Court in 1989. Mr. Christiansen served in the Judge Advocate Generals Corps of the United States Army from 1973 until 1978. Mr. Christiansen served as Town Attorney for the Town of Longboat Key, Florida from 1981 through 1990. He served as a member of the Florida Bar Grieva= Committee for the Twelfth Judicial Circuit from 1988 to 1991. He is currently a member of the Sarasota County Bar Association, the Florida Bar Association and its Vocal Government Law, Administrative Law and Labor and Employment Law Sections. Mr. Christiansen is also a member of the National Association of Public Pension Attorneys and the Florida Public Pension Trustees' Association. Currently, Mr. Christiansen's practice is Prrnaril Y in the area dfmunicipal. employee pension benefit plans and is comprehensive in the representation of local government employee retirement plans in Florida. He provides advice and representation in all areas. Both Mr. Dehner and Mr. Christiansen will be available and responsible for the complete representation of the fund in providing prompt and comprehensive legal services. The Firm's governmental clients are the following: = OR D STR_ICF ANNA MARIA ELAM Fire Pension Fund APOPKA Fire, General Employees & Poke Pension Funds AUBURNDALE Fire, General Employees & Poke Pension Funds AVON PARK Fire & Police Pension Fund BARTOW Fire & Police Pension Funds BELLEAR Poke & Fire Pension Fund BELLEAIR BLUFFS Fire Pension Fund BELLEVtEW Poke Pension Fund BONITA SPRINGS Fire Pension Fund BRADENTON Police & Fire Pension Funds BROOKSVILLE Fire Pension Fund BUNNELL Fire Pension Fund CAPE CORAL Fire, Police & General Employees Pension Funds CASSELBERRY General Employees, Police & Fire Pension Funds CEDAR HAMMOCK Firefighters' Pension Fund CLEARWATER Fire & Police Pension Funds COCOA BEACH Police & Fire Pension Funds COCOA General Employees Pension Fund CRESTVIEW General Employees, Poke & Fire Pension Funds DAYTONA BEACH Police & Fire Pension Fund DESTIN Fire Pension Fund DUNEDIN Fire Pension Fund -5- ENGLEWOOD Water District Employees & Fire Pension Funds FERNANDINA BEACH General Employees, Fire & Police Pension Funds FORT MYERS Fire, General Employees & Police Pension Funds FORT WALTON BEACH Fire & Police Pension Funds FROSTPROOF Police Pension Fund GULFPORT Fire & Police Pension Funds HAINES CITY Fire & Police Pension Funds HOLMES BEACH Police Pension Fund KISSIMMEE General Employees, Police & Fire Pension Funds KISSIMMEE Utility Authorliy Pension Fund LAKE ALFRED Police & General Employees Pension Funds LARGO Pollee & Fire Pension Fund LEESBURG Police Pension Fund LONGBOAT Employees' Pension Fund LYNN HAVEN Fire, General Employees & Police Pension Funds MELBOURNE Fire, General Employees & Police Pension Funds MILTON Fire Pension Fund NEPTUNE BEACH Fire & Police Pension Funds NEW PORT RICHEY Flee & Police Pension Funds NEW SMYRNA BEACH Fire Pension Fund , NORTH BAY Fire Pension Fund NORTH PORT Fire & Police Pension Funds OCALA General Employees & Poke Pension Funds OCOEE General Employees, Poke & Fire Pension Funds OKALOOSA Fire Pension Fund OKEECHOBEE Fire, General Employees & Poke Pension Funds ORANGE PARK Fire Pension Fund ORMOND BEACH Fire, General Employees & Poke Pension Funds OVIEDO Police Pension Fund PALM BEACH GARDENS Fire & General Employees Pension Funds PALM HARBOR Fire Pension Fund PALMETTO General Employees Pension Fund PANAMA CITY Fire & Police Pension Funds PANAMA CITY BEACH Fire & Police Pension Funds PLANT CITY Pollee & Fire Pension Funds PORT ORANGE Fire Pension Fund PUNTA GORDA Fire Pension Fund SANFORD Fire & Police Pennon Funds SARASOTA General Employees & Police Pension Funds SEBRING Fire & Poke Pension Funds SEMINOLE Fire Pension Fund SOUTH MANATEE Fire Pension Fund SOUTH PASADENA Fire Pension Fund SOUTH TRAIL Fire Pension Fund ST. AUGUSTINE Fire Pension Fund ST. CLOUD Police & Fire Pension Funds ST. PETE BEACH General Employees. Fire & Police Pension Funds SUNRISE Police Pension Fund TALLAHASSEE Employees Pension Fund TARPON SPRINGS Fire Pension Fund TITUSVILLE General Employees. Police & Fire Pension Funds VENICE Fire, General Employees & Police Pension Funds WINTER GARDEN General Employees, Police & Five Pension Funds WINTER HAVEN Fire, Police & General Employees Pension Funds WINTER PARK Fire & Police Pension Funds -6- s ' (4) Costs to Provide Various Services The firm will perform the required services identified in Section B. on a time basis at the rate of $180.00 an hour for legal services and one-half that rate for travel time, plus reimbursement for out-of-pocket expenses incurred in connection with the representation and travel. gylmmfta rfpcku.106 s -7- LL 0 Mrwate 0 ONE CITY. ONE FUTURE. City Attorney's Office Interoffice Correspondence Sheet TO: Pension Board Trustees FROM: Pamela K. Akin, City Attorney CC: Margie Simmons, Finance Director SUBJECT: New Lawsuit DATE: August 3, 1999 Officer Krieger has initiated a lawsuit against the Pension Trustees and the City of Clearwater regarding his request to buy back pension credit. Christiansen and Dehner, the Pension Board's counsel, do not do litigation. I have therefore, directed Dick Hull to take the appropriate steps at this time to protect the Trustees' interests. At the upcoming Pension Trustee's meeting we will discuss this issue and to discuss hiring outside counsel to represent the Trustees in the litigation. I suggest that the law firm of Thompson, Sizemore & Gonzalez be hired to handle the litigation. PKA/gma